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YMH2, (3, -1) formula, stop loss 0.382% Stretch 24 January 2012‏


Hi,
The (3, -1) formula strategy did not print a price measuring objective. Instead I was stopped out.

23 January settlement: 12650
24 January PIVOT POINT: 12613
Stretch calculation for 24 January 2012: 29

24 January 2012.
Basis intra-day trading the (3, -1) formula strategy for the March $5 Dow (YMH2) futures, the first trade was stopped out.

12650 - 39 = 12621 (with a stop at 12609, i.e., 0.382% of the Stretch = 29 x 0.382% = 11. Because stops are never placed at round numbers, the stop was at 12609. 12608 was the reversal low. :-(

I stopped trading. If the first trade of the day is a loss, I stop trading for the day.

Stand in front of the mirror and repeat with conviction, ... "IF I START WITH A LOSS I STOP TRADING FOR THE DAY."

12621 - 12 point stop = 12609 = 12 points x $5 per tick = $60 loss = 12% loss basis $500 intra-day margin.

FYI,... price rotations within the 24 January narrow 92 point trading range were 92 points down followed by 67 points up into the close.
Stretch = 29
1.618% Stretch = 47
2.618% Stretch = 76
4.25% Stretch = 123